VolitionRx Limited's (NYSEMKT:VNRX): VolitionRX Limited, a life sciences company, engages in the development of blood tests to help diagnose a range of cancers worldwide. On 31 December 2018, the US$128m market-cap posted a loss of -US$18.0m for its most recent financial year. The most pressing concern for investors is VNRX’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for VNRX.
VNRX is bordering on breakeven, according to the 3 Medical Equipment analysts. They expect the company to post a final loss in 2020, before turning a profit of US$7.1m in 2021. So, VNRX is predicted to breakeven approximately 2 years from now. How fast will VNRX have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 56% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving VNRX’s growth isn’t the focus of this broad overview, however, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I’d like to point out is that VNRX has managed its capital judiciously, with debt making up 27% of equity. This means that VNRX has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
There are too many aspects of VNRX to cover in one brief article, but the key fundamentals for the company can all be found in one place – VNRX’s company page on Simply Wall St. I’ve also put together a list of pertinent aspects you should further examine:
- Historical Track Record: What has VNRX's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on VolitionRx’s board and the CEO’s back ground.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.